Real GDP growth isexpected below 2% in 2016 on depressed oil prices. We foresee a pick-up in 2017 on the back of a potential recovery in oil prices and as the non-oil sector gathers pace. Inflation is projected to come in higherin 2016 andaverage 2.5%,predominantly due to subsidy cuts. The budget deficit is set to widen further in 2016, to 17% of GDP, as oil revenues remain weak.The bankingsector is expected to face some liquidity constraints until at least the end of 2016, on the back of tepid deposit growth.Provided by National Bank of Kuwait